TRANSMITTAL LETTER FOR BOARD MEETING OF MARCH 7, 2019
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to award Contract 18-805-22 (Re-Bid), Furnish, Deliver, and Install Underground Steam and Utility Piping at the Calumet Water Reclamation Plant, to Joseph J. Henderson & Son, Inc., in an amount not to exceed $237,000.00, Account 201-50000-645750, Requisition 1494643
Body
Dear Sir:
On June 21, 2018, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids, Contract 18-805-21, Furnish, Deliver, and Install Underground Steam and Utility Piping at the Calumet Water Reclamation Plant.
In response to a public advertisement of September 19, 2018, a bid opening was held on October 16, 2018. No bids were received for this contract.
On December 6, 2018, authorization to amend the Board Order of June 21, 2018 was approved by the Board of Commissioners. The cost estimate was increased from $93,000.00 to $210,000.00.
In response to a public re-advertisement of December 12, 2018, a bid opening was held on January 29, 2019. The bid tabulation for this contract is:
ANTARCTIC MECHANICAL SERVICES, INC.
D/B/A AMS MECHANICAL SYSTEMS, INC. *$15,177.00
JOSEPH J. HENDERSON & SON, INC. $237,000.00
RAUSCH INFRASTRUCTURE LLC $269,700.00
MISFITS CONSTRUCTION COMPANY $280,500.00
ANCHOR MECHANICAL, INC. $286,700.00
*corrected total
Seven hundred ninety-four (794) companies were notified of this contract being advertised and thirty-four (34) companies requested specifications.
Antarctic Mechanical Services, Inc., d/b/a AMS Mechanical Systems, Inc., the apparent low bidder, made an error on the lump sum price for item 1. This error led to a corrected bid amount of $15,177.00 which is approximately 93% below the Engineer’s estimate of $210,000.00. The corrected bid amount is far below the market value of the work specified, and is not within a reasonable range of the other competitive bids. The error is known by the bidder. Therefore, the bid is rejected and the Director of Procurement and Materials Management has informed Antarctic Mechanical Services, Inc., d/b/a AMS Mechanical Systems, Inc., of this action.
In addition, for informational purposes, Antarctic Mechanical Services, Inc., d/b/a AMS Mechanical Systems, Inc., requested a full waiver of the MBE, WBE, and SBE goals. AMS indicated that they were unable to get MBE, WBE, SBE participation in their project bid.
Joseph J. Henderson & Son, Inc., the lowest responsible bidder, is proposing to perform the contract in accordance with the specifications. The estimated cost for this contract was $210,000.00, placing their bid of $237,000.00 approximately 12.9 percent above the estimate.
Joseph J. Henderson & Son, Inc., has executed the Multi-Project Labor Agreement (MPLA) certificate as required. It is anticipated that the following construction trades will be utilized on this contract: pipefitters, laborers, truck drivers, carpenters, cement masons, insulators, and hoisters. The list of construction trades is not intended to confer any rights or jurisdiction upon any union or unions.
The contract will require approximately three (3) people for the services.
Joseph J. Henderson & Son, Inc., is in compliance with the Affirmative Action Ordinance, Revised Appendix D as indicated on the attached report. The Minority Business Enterprise (MBE), Women Business Enterprise (WBE) and Small Business Enterprise (SBE) utilization goals for this contract are 20 percent MBE, 10 percent WBE, and the bidder offers MBE and WBE credits to satisfy SBE participation.
The work under this contract shall begin upon approval of the Contractor’s Bond and be completed within 250 calendar days.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to award Contract 18-805-22 (Re-Bid) to Joseph J. Henderson & Son, Inc., in an amount not to exceed $237,000.00, subject to the contractor furnishing a performance bond in form satisfactory to the Law Department and approved by the Director of Procurement and Materials Management.
Funds are available in Account 201-50000-645750.
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management, DAL:SEB:cm
Respectfully Submitted, Barbara J. McGowan, Chairman, Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for March 7, 2019